We were stunned although not altogther surprised on hearing the news that female executives earn around £400,000 less in their career lifetime than male executives in comparable positions. The Telegraph covers this story here
The average female company executive earns more than £400,000 less than a male counterpart over her career, a new study has revealed.
The average gender pay gap for UK executives is more than £10,000 a year, while women receive less than half what men are given in bonus payments, said the Chartered Management Institute (CMI).
The research also showed that 4.3% of female executives were made redundant in the past year, 1.1 percentage points more than male bosses.
Women now make up 57% of company executives, but only 40% are departmental heads and fewer than one in four are chief executives.
The CMI estimated that a woman taking up an executive job at the age of 25 and working until 60 would earn almost £1.1 million, compared with more than £1.5 million for men.
A survey of more than 38,000 executives revealed a “substantial” gender pay gap at the higher end of the executive career ladder.
CMI chief executive Ann Francke said: “A lot of businesses have been focused on getting more women on boards but we’ve still got a lot to do on equal pay and equal representation in top executive roles. Women make up almost three out of four at the bottom of the ladder but only one out of four at the top.
“This lack of a strong talent pipeline has to change, and fast. Allowing these types of gender inequalities to continue is precisely the kind of bad management that we need to stamp out.
“Companies are missing out on the full range of management potential at a time when we need to be doing everything we can to boost economic growth.”
Dawn Nicholson of finance firm PwC said: “The size of the lifetime earnings gap between men and women is disturbing and suggests that women are going backwards versus their male counterparts.
“If the career path is identical, then it is hard to see why the differential would exist, let alone how it could be justified.
“Employers must really ask themselves whether they are being absolutely unbiased in the pay decisions they make. They need to consider whether they are fairly evaluating the different and diverse skill sets, not just of men and women in their companies, but of all of their employees.”
Labour equalities spokeswoman Kate Green said: “It is both unfair and unjustified that women should be paid less than men for doing equivalent jobs.
“The gender-pay gap at the management level is still higher now than it was in 2010, and at this rate, 42 years after the Equal Pay Act was passed, it will take at least another 21 years for management-level pay amongst men and women to be equalised. This is simply not good enough.
“It will be a continuing disappointment to many that the Government is still refusing to consider the provisions, provided for by Labour, to introduce mandatory equal pay audits if sufficient voluntary progress isn’t made.
“We also learn that, in the year female unemployment hit a 25-year national high, women executives have been hit disproportionately hard by job losses and female directors have been made redundant at twice the rate of men. It is increasingly clear that, on jobs, as well as pay, the clock on women’s equality is being turned back.”
Minister for Women and Equalities Jo Swinson said: “These figures show that women are still being paid less than men. More needs to be done to tackle this, and we are committed to doing so.
“So far we have made good progress to end pay discrimination.
“We have implemented measures in the Equality Act to make pay secrecy clauses unlawful and we are taking through legislation which would give Tribunals power to order that employers conduct a pay audit where they have been found to discriminate over pay.
“On top of this, our Think, Act, Report initiative encourages companies to report on gender equality in the workplace, including reporting on pay and other workplace issues.
“But for all this, pay inequality remains a stubborn obstacle to real fairness in the workplace. We will continue to work with businesses to ensure that we do all we can to help them make the most of women’s talents, and unlock their full potential.”